Broadband Users Won’t Pay For Music

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Boston-based analyst firm Strategy Analytics has a new
survey out that indicates while broadband users are interested in premium
content services, few of them are willing to pay up.

The survey, which polled 525 broadband households in May, found that music
downloads and networked gaming were the most popular items among premium content
services.

The survey found 46 % of users said they would be interested in a premium
broadband service if it allowed them to download music legally.

But only 16 % said they would be willing to fork over $5 to $15 monthly for
that privilege.

Similarly, only 20 % of users indicated interest in a premium broadband
service for gaming, and of that number only 17 % said they would pay $5 to $15
monthly to sign up.

'For service providers considering which types of premium content to add to
their broadband offerings, these results suggest the importance of addressing
specific consumer segments,' said James Penhune, director of the Strategy
Analytics global broadband practice, in a release.

'While music services may appeal to the greatest number of potential users,
other services may be equally likely to draw paying customers. And the video
game business has always been driven by highly motivated users who are
accustomed to paying significant prices for hardware and
software.'

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